Bain Capital lowers its fees

Louis Vuitton doesn't slash its prices. But Bain Capital, a Wall Street version of the upscale retailer, has begun to do so

By

The Wall Street Journal

July 15, 2011 5:16 p.m. GMT

For more than a decade, Bain charged higher fees than almost all competitors. The Boston-based private equity firm required investors to pay 30% of gains, above a certain level, from funds managed by Bain, and 2% of all money invested. By comparison, rivals usually take 20% of profits and charge a management fee of about 1.5%.

Bain found eager investors because it scored annual gains averaging about 30% for most of its 27-year history, investors say, with some funds quadrupling their money over the course of their existence....